Anyone can clarify on this? Assuming no additional charges comes from prepayment on 7th month

I have a home loan with AmBank and I'm looking to continue making my repayment during the moratorium period. From my conversation with the call centre, they assured me two things if I did so:

1. The payment made during the moratorium period will 100% go to reducing principal.

2. For each payment made, there is no need to advise the bank to have the payment go into reducing principal. Everything will be automated during the moratorium. I had to clarify this because in the past when I do put additional cash into my home loan, they will just treat it as pre-payment instead of reducing the principal. So I had to give the bank a call to instruct them to have the cash reduce my principal.

To be honest, I'm quite sceptical of his answer. I'll make my payment tomorrow (1st Apr) via AmOnline and see if points (1) and (2) hold true. Anyone here has a home loan with AmBank and also thinking of continuing their payment during the moratorium period? Are you guys getting the same info as well?

For HP must apply. Approval subject to case to case basis.

but lets say if you dont opt for the moratorium.

and you continue paying your unchanged monthly installment for the remaining loan tenure (apart from movements in OPR) just for an additional 6 months, how would you pay extra?

sorry for asking so much, I'm just very curious 

sorry my bad. I mean if you opt for the moratorium, and you just continue paying every month until the end of the loan tenor.

assuming the monthly loan installment remains constant apart from movements in OPR, you would still pay essentially the same number of months and amount.

so how would you pay extra if you opt in?

as per my understanding, the interest accrue will not be compounded so the interest will be added into the principal balance, hence the longer tenure is necessary to pay longer.

yup, so RHB is doing the latter which is to increase tenor.

extracted based on their website:

What would happen to my loan/financing after the moratorium period?

Will I need to pay more interest/profit after the moratorium period is over?
Is there an increase in monthly payments, or longer tenure?
The monthly instalment/payment amount will remain unchanged after the deferment period. However, the monthly instalment/payment will be adjusted should there be any revision of the Bank’s reference rates (i.e. Base Rate/Base Lending Rate/Base Financing Rate) for variable rate loan/financing.

You will continue paying the same monthly instalment/payment1 with an additional tenure of 6 months2.

You may also contact us after the moratorium period if you want to arrange for other suitable payment plans that you can afford such as increased instalment/payment or further tenure extension2.

Applicable to Home Financing, Property Financing and ASB Financing:
1The monthly instalment/payments will first be allocated to pay off the deferred interest/profit. Payment will only be subsequently allocated to reduce the principal balance once all outstanding interest/profit has been paid. 2Extension of tenure is subject to the maximum loan/financing tenure of 35 years for home financing.

That's why from the above you don't really lose out much even if you opt in for the moratorium apart from movements in the OPR. The only argument people are saying now is that if you're not short of cash, why not pay now while the BLR is so low.

But apart from the BLR savings which to me is marginal, you don't really pay ADDITIONAL interest per say. Of course after the deferment your 7th and 8th month payments will predominantly used to settle interest, so your principal amount won't touch much.

Given the situation, I honestly doubt the OPR is going to go up in the coming months or even years.

My question is can we opt for the moratorium, but use the amount to just pay down the principal which will lower the overall interest required to be paid. Or would that negate the terms and cancels the moratorium.

[attachmentid=10461577]

I have house loan with Hong Leon Islamic,
But I didn’t receive any sms say start April the loan will defer ....
So I still need to pay?
Every month the loan amount will auto deduct from saving account....

Anyone has full flexi home loan with CIMB?
Does the moratorium applicable to full flexi loan or its considered as overdraft?
I did not opt-out, but I found the instalment amount was deducted from my current account linked to this full flexi loan.

I have loan with public bank. If I choose opt in is it wise decision? I plan use the monthly loan payment to invest.
I'm not sure I understand correctly public bank policy that its just prolong my loan payment to 6 months but loan amount after the interest still the same as mentioned no compounding interest.

What is non compounded loan interest?

Due to too many different ideology on the moratarium, i have decided to proceed my loan as usual..

Too many different ideas and views about it which makes things very complicated..

Ringgit Plus comes out with a guide whether to take or not to take the deferment offer.

Malaysia Bank Moratorium: Why You Should Opt For The 6-Month Deferment For ALL Loans

https://ringgitplus.com/en/blog/loans/malay...sHy5bCveTADVnlg

It's a long article with 3 sections covering different types of credit facility. Happy reading!

That said, it makes sense to still take the deferment and save the money in a fixed deposit with 4% p.a. returns for the next 30 years. If you chose repayment Option 3 in the example above, you will earn a nett amount of RM22,970.51 (after deducing the interest charges in the same timeframe). It may not be much, but hey, this is RM22,970.51 more in your pocket than if you didn’t take the deferment whatsoever.

Guys, i received penangguhan sms from mbb for my hire purchase. If i dun reply, the auto debit payment will postpone also?  Will the penangguhan affect my future loan as i still afford to make the payment currently.

Are you referring to Option 2 (A) : Pay the same monthly repayment, and extend loan tenure ?
Yes, I don't know how on earth Ringgitplus calculated a "Whopping" 21 months loan tenure extension.
My calculation pointing me to approximately 14 months extension under option 2 (A) in the article.

As to your claim that RHB can do 6 months extension only @ exact same monthly instalment with interest prioritization on the 7th month onwards.....No bro, it's not possible.

After reading this again, i hope my understanding on the article is correct.

For me, i will opt IN for 6 months deferment with Option 1: Pay the accrued interest in one lump sum after end of 6 deferment period.

Reason is:

1) As mention in the article, eventhough monthly interest is still running, it will not be compounded. So meaning there is no harm that i save up the 6 month cash with me, and have flexibility to use the cash in case of emergency.  (example my monthly fixed loan payment = RM4k, in 6 months i will have RM24k extra cash).

2) If everything are well, I will pay the loan in lumpsum after 6 months (total RM24k). By this method, i will not incur any additional cost or interest on my loan.
So in my opinion, this would be the best way for people that are financially stable but still wants to have a certain flexibility on the loan payment since we do not know what will happen in 6 months time. We might have a job now but who knows after that.

Any sifu please correct me if my understanding is wrong.

Sorry bro, even though monthly interest is not compounded, the normal interest is still accumulated right? So by not paying for the six months, you are actually accumulating full interest over that six months. Compared to if you continue paying for six months, your principal and interest is reduced.

I finally gotten through RHB CS line. What they told me is exactly the same with what the RHB branch people said...which is also consistent with their publishing in their FAQ.

They reassured that assuming OPR doesn't move and IR remains the same, your monthly repayment is the same and will not increase. Additional 6 months tenor.

Umm sorry but back to square one only starting from the seventh months onward right ? There will be a little bit of reducing interest missed during the first six months?

Consider this:

Case 1: continue paying, principal reduced hence interest is reduced every month? At the end of six months, remaining loan is 100k

Case 2: defer paying, principal is not reduced hence full interest is charged every month. At the end of six months, dump lump sum until the loan is 100k

Will the total interest paid over the loan tenure be the same for the two cases?

The CS person didn't specifically said that the outstanding interest for the 6 months has to be repaid within 7-12 months...this is a gray area and they only told me the apportionment between interest/principal will be revised to accommodate this. Called again this morning, and RHB still reassured me its merely 6 months extension of tenor.

I recorded the call, saved the PDF copy of the FAQ and T&Cs etc for future reference

Applicable to Home Financing, Property Financing and ASB Financing:
1The monthly instalment/payments will first be allocated to pay off all outstanding interest/profit. Payment will only be subsequently allocated to reduce the principal balance once all outstanding interest/profit has been paid.